Tuesday, September 23, 2008

How to be sued by space cadets - Regtel, text messages and "Ireland's first astronaut"

Tom Higgins is a space cadet. Literally. He has signed a contract with Virgin Galactic for their forthcoming space tourism service and claims the grandiloquent and somewhat premature title of Ireland's first astronaut.

Now Realm is also suing Regtel - the industry self-regulatory body for premium rate telecommunications services. Why? After multiple complaints (e.g. 1, 2, 3) about Realm's Foneclub / MobileMania services, RegTel decided that Realm was operating in breach of its Code of Practice and decided to impose a 12 month suspension during which it would be unable to send premium messages. From the Irish Times:

ONE OF Ireland's best-known premium mobile phone text providers claims that its business would be 'wiped out' if a 12-month suspension from sending messages is imposed by the independent regulator (RegTel).

Realm Communications Ltd, Castle Drive City West business Park, Dublin, has brought High Court proceedings arising out of a finding by the Regulator of Premium Rate Telecommunications Services (RegTel) that its mobile phone credit service, FoneClub/ Mobile Mania, had breached the terms of its code of practice.

Realm was founded by businessman Tom Higgins and provides other services such as Irish Psychics Live, WebTarot, Century Psychics and Great Irish Breaks, as well as a live weather forecasting service. It argues that the findings made by RegTel following alleged complaints are unlawful.

Realm is seeking to have RegTel's adjudication and proposed sanctions, including the suspension of its services, quashed.

This case will, if it proceeds, be the first time that this industry self-regulation has been examined in the courts. (Realm Communications has, apparently, sued RegTel before, but that action doesn't seem to have made it to trial.) Ironically, this dispute comes just after the Minister for Communications announced his belief that self-regulation has failed and promised to amend the Broadcasting Bill 2008 to have RegTel's functions transferred to Comreg. In light of its apparent imminent demise, how keen will RegTel be to fight this particular battle?